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 IOSR Journal of Mechanical and Civil Engineering (IOSR-JMCE) e-ISSN: 2278-1684,p-ISSN: 2320-334X, Volume 12, Issue 2 Ver. V (Mar - Apr. 2015), PP 17-26 www.iosrjournals.org
DOI: 10.9790/1684-12251726 ww.iosrjournals.org 17 | Page
Factors Affecting Success of Construction Project
 Nipin Joseph Babu
(School of Building Science Civil Engineering Dept, Hindustan Institute of Technology & Science, Chennai India)
 Abstract:
The construction industry is dynamic in nature due to the increasing uncertainties in technology, budgets, and development processes. Nowadays, building projects are becoming much more complex and difficult. The project team is facing unprecedented changes. The study of project success and the critical success  factors ~CSFs! are considered to be a means to improve the effectiveness of project. However the concept of  project success has remained ambiguously defined in the mind of the construction professionals. Various attempts were made by different researchers to determine CSFs in construction. A number of variables influencing project success have been proposed. Some variables are common to more than one list, but there is no general agreement on the variables. This Project examines the success factors and determines which success  factor is more critical in a successful completion of a project. From literature review and past studies, it was obtained that there were different directions and methodologies used in order to achieve the required target,  goals and objectives. A structured questionnaire survey approach is considered to study the impact of various attributes and factors affecting success. The relative importance index method (RII) is used here to determine owners, consultants and contractors perceptions. In this study 63 factors affecting the success of construction  projects are selected. These factors are grouped into 10 groups with the help of different literature reviews.
Keywords:
Critical Success Factor, Relative Importance Index, Owner, Consultant, Contractor, Projects
 
I.
 
Introduction
The construction industry is dynamic in nature due to the increasing uncertainties in technology,  budgets, and development processes. Nowadays, building projects are becoming much more complex and difficult. The project team is facing unprecedented changes. The study of project success and the critical success factors ~CSFs! are considered to be a means to improve the effectiveness of project. However the concept of  project success has remained ambiguously defined in the mind of the construction professionals. Various attempts were made by different researchers to determine CSFs in construction. A number of variables influencing project success have been proposed. Some variables are common to more than one list, but there is no general agreement on the variables. Construction activity is an integr 
al part of a country’s infrastructure and industrial development and
must be taken care of for a healthy growth of the economy. It is imperative to put an all-out effort into ensuring that projects are completed as per the stipulated objectives. An experimentation of the recent literature indicates that construction projects are frequently completed with large cost overruns, extended schedules and quality concerns. Delay is defined as the time overruns either beyond the completion date specified in the contract, or  beyond the date that the parties agreed upon delivery of the project. A delay in the construction may cause losses, or negatively affect some or all of the project parties. The efforts of delay may include time overrun, cost overrun, disputes, arbitration, litigation, and total abandonment. During the last four decades a number of studies investigated factors which aid successful completion of projects. Project success can be defined as meeting the required expectation of the stakeholders and achieving its intended purpose. This can be attained by understanding what the end result would be, and then stating the deliverables of the project. Success criteria or a person's definition of success as it relates to a  building often changes from project to project depending on participants, scope of services, project size, sophistication of the owner related to the design of facilities, technological implications, and a variety of other factors. On the other hand, common threads relating to success criteria often develop not only with an individual  project but across the industry as we relate success to the perceptions and expectations of the owner, designer, or contractor. A building project is completed through a combination of many events and interactions, planned or unplanned, over the life of a facility, with changing participants and processes in a constantly changing environment. This Project examines the success factors and determines which success factor is more critical in a successful completion of a project. This will provide organizations involved in the construction industry with the foundation on which such strategies can be developed in the future. This Study focuses on the building construction projects in India.
 
 Factors Affecting Success Of Construction Project
DOI: 10.9790/1684-12251726 ww.iosrjournals.org 18 | Page
II.
 
Literature Review
Increasing uncertainities in technology, budgets and development processes create a dynamic construction industry. Building projects are now much more complex and difficult and the building project team faces unprecedented changes. The study of project success and critical success factors (CSFs) is a means of understanding and thereby improving the effectiveness of construction projects. However the concept of project success remains ambiguously defined in the mind of construction professionals. One of the objectives of this  project is to understand and explain, through study of literature, critical success factors. Literature review about success was reviewed (Albert P.C.Chan; David Scott; and Ada P.L.Chan (2004), Syed ZafarShahibTabish and K N Jha (2012), Arti.J.Jari, Pankaj, P.Bhangale (2013), AfshinPakserest, Dr. Gholamrez aAsgari (2012), D.K.H Chua, Y.C Kog, and P.K Loh (1999), Adnan Enhassi, Sheriff Mohamed, and SalehAbushaban (2000), Muhammad NabeelMirza, Zohreh Pourzolfaghar, MojdeShahnazari (2013), Mohammad Mehdi Mortaheb, Yeganeh Amini, Amir HoseinYounesian (2013),Ann T.W.Yu, Qiping Shen, John Kelly, and Kirsty Hunter (2006), Neringa Gudienea , Audrius Banaitisa, Nerija Banaitienea, Jorge Lopes (2013), SarathGunathilaka, Martin Morgan Tuuli and Andrew R J Dainty, Muhammad Saquib (2008) , WalidBelassi, OyaIcmeliTuckel (1996), Kylindri, Blanas, Henriksen, Stoyan (2012)) to identify the factors affecting the success of construction projects. 60 factors affecting success of construction projects are selected. These factors are grouped in to 10 groups based on literature review. These groups can give a comprehensive summary of the main key  performance indicators. The factors, which are considered in the questionnaire, are summarized and collected according to previous studies. The present study has adopted the Relative Importance Index (RII) method to identify factors affecting the success of construction projects. In this study 60 factors affecting the success of construction projects are selected . These factors are grouped into 10 groups with the help of different literature reviews. A structured questionnaire survey is done to find the impacts of various attributes and factors which affects the success of construction project. In addition, the questionnaire can assist to study the attitude of owners, consultants and contractors towards the factors that affect on performance in the construction industry. The different factors that affects the success of construction projects are shown in table below:
Table:1 Factors affecting success of construction project
S.NO FACTORS 1 COST FACTORS 2 TIME FACTORS 3 QUALITY FACTORS 4 PRODUCTIVITY FACTORS 5 CLIENT-SATISFACTION FACTORS 6 REGULAR AND COMMUNITY SATISFACTION FACTORS 7 PEOPLE FACTORS 8 HEALTH & SAFETY FACTORS 9 INNOVATION & LEARNING FACTORS 10 ENVIRONMENT FACTORS
III.
 
Research Methodology
A questionnaire survey was used to elicit the attitude of owners, consultants, and contractors towards the factors affecting the success of construction projects . Questionnaires were sent to randomly selected owners, consultants, and contractors. Consultants were identified from the listings of consultants association.120 questionnaires were distributed as follows: 25 to owners; 35 to consultants; and 60 to contractors. 88 were received (response rate of 73%) as follows: 17 (70%) from owners; 25 (72%) from consultants; and 46 (77%) from contractors as respondents. The respondents were asked to indicate, based on their local experience the level of importance of each one of the identified 63 factors of success on a five-point Likert scale as: not important, slightly, moderately, very, and extremely important. The questionnaire has been validated by the criterion-related reliability test which measures the correlation coefficient between the factors affecting the success of construction projects in one field and the whole field, and structure validity test (Spearman test). The respondents were experienced construction project managers, site engineers/office en
gineers, and organizations’
 managers (with average experience of 20 years in the construction industry). 60 factors believed to affect project success were considered in this study and were listed under 10 groups based on the literature reviewed (Okuwoga 1998; Dissanayaka and Kumaraswamy 1999; Reichelt and Lynies 1999; Karim and Marosszeky 1999; Brown and Adams 2000; DETR 2000; Lehtonen 2001; Chan 2001; Samson and Lema 2002; Kuprenas 2003; Cheung et al. 2004; Iyer and Jha 2005; Navon 2005; Love et al. 2005; Ugwa and Haupt 2007). The success factors were summarized and collected according to previous studies and others as recommended by local experts. The main groups considered in this paper are: time, quality, productivity, client satisfaction, regular and community satisfaction, people, health and safety, innovation and learning, and environment. The
 
 Factors Affecting Success Of Construction Project
DOI: 10.9790/1684-12251726 ww.iosrjournals.org 19 | Page relative importance index method (RII) was
used herein to determine owners’, consultants’, and contractors’
  perceptions of the relative importance of the identified success factors. The RII was computed as (Cheung et al. 2004; Iyer and Jha 2005; Ugwu and Haupt 2007):

=
 
 
 
(1) where W is the weight given to each factor by the respondents and ranges from 1 to 5; A
 – 
 the highest weight = 5; N
 – 
 the total number of respondents.
IV.
 
Results & Discussions
4.1
 
Factors Affecting Success Of Construction Projects Table 2 summarizes the computed RIIs and their rank as perceived by the 3 responding groups. Table:2 Summary of relative importance index and rank for factors affecting the performance of construction projects
SUCCESS FACTORS OWNER CONSULTANT CONTRACTOR RII RANK RII RANK RII RANK (1)
 
Cost Factors
Market share of organization 0.600 54 0.709 39 0.726 39 Liquidity of organization 0.729 31 0.842 5 0.839 10 Cash flow of project 0.812 14 0.800 11 0.848 9 Profit rate of project 0.694 38 0.776 14 0.739 38 Overhead percentage of project 0.647 48 0.687 49 0.662 47 Project design cost 0.500 63 0.688 43 0.582 63 Material & Equipment cost 0.812 14 0.776 14 0.813 16 Project labor cost 0.741 27 0.744 22 0.739 37 Project overtime cost 0.588 58 0.600 59 0.617 55 Motivation cost 0.600 54 0.584 61 0.609 58 Cost of rework 0.588 58 0.672 51 0.587 62 Cost of variation orders 0.565 62 0.688 43 0.662 46 Waste rate of materials 0.650 46 0.624 57 0.639 51 Regular project budget update 0.638 50 0.742 24 0.743 35 Cost control system 0.725 33 0.728 28 0.765 32 Escalation of material prices 0.847 5 0.832 7 0.889 4 Differentiation of currency prices 0.788 18 0.808 9 0.874 5
(2)
 
Time Factors
Site preparation time 0.682 4502 0.664 53 0596. 61 Planned time for construction 0.753 26 0.760 18 0.765 30 Percentage of orders delivered late 0.694 40 0.768 17 0.774 29 Time needed to implement variation orders 0.706 35 0.704 40 0.693 43 Time needed to rectify defects 0.659 44 0.672 51 0.639 50 Average delay in claim approval 0.650 46 0.728 28 0.765 30 Average delay in regular payments 0.824 11 0.776 14 0.839 11 Unavailability of resources 0.871 3 0.858 2 0.904 3 Average delay because of closures leading to material shortage 0.941 1 0.896 1 0.943 1
(3)
 
Quality Factors
Conformance to specification 0.882 2 0.808 9 0.822 13 Unavailability of competent staff 0.859 4 0.848 3 0.865 6 Quality of equipment and raw materials 0.835 9 0.840 6 0.861 7 Quality assessment system in organization 0.706 35 0.712 35 0.743 34
(4)
 
Productivity Factors
Project Complexity 0.729 31 0.712 35 0.761 33  Number of new projects/year 0.600 54 0.688 43 0.630 53 Management-labor relationship 0.776 22 0.688 43 0.796 22 Absenteeism rate through project 0.776 20 0.688 43 0.743 36 Sequencing of work according to schedule 0.800 17 0.816 8 0.804 20
(5)
 
Client Satisfaction Factors
Information coordination between owner and project parties 0.729 29 0.792 12 0.809 19 Leadership skills for project manager 0.835 7 0.848 3 0.904 2 Speed and reliability of service to owner 0.718 34 0.744 22 0.822 13  Number of disputes between owner and project parties 0.753 24 0.728 28 0.720 40  Number of rework incidents 0.635 51 0.712 35 0.627 54
(6)
 
Regular & Community Satisfaction Factors
Cost of compliance to regulators requirementation 0.600 54 0.648 55 0.604 59  Number of non-compliance events 0.635 51 0.624 57 0.614 56 Quality and availability of regular documentation 0.647 49 0.736 25 0.653 48 Site condition problems 0.788 18 0.712 35 0.707 41
(7)
 
People Factors
Employee attitude 0.682 41 0.728 28 0.795 23

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